DoD's $23.7M contract for ICBM hardness analysis awarded to General Dynamics Mission Systems, Inc

Contract Overview

Contract Amount: $23,737,375 ($23.7M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-07-01

End Date: 2024-12-31

Contract Duration: 3,105 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF, ENGINEERING SERVICES TO DETERMINE WING AND SYSTEM LEVEL HARDNESS STATUS AND HARDNESS DEGRADATION PROJECTIONS FOR THE ICBM WEAPONS SYSTEM

Place of Performance

Location: DEDHAM, NORFOLK County, MASSACHUSETTS, 02026

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: IGF::OT::IGF, ENGINEERING SERVICES TO DETERMINE WING AND SYSTEM LEVEL HARDNESS STATUS AND HARDNESS DEGRADATION PROJECTIONS FOR THE ICBM WEAPONS SYSTEM Key points: 1. Contract awarded for critical engineering services related to ICBM weapon system hardness. 2. Long-term contract duration of over 8 years suggests ongoing need for these specialized services. 3. Firm Fixed Price contract type provides cost certainty for the government. 4. Sole-source award raises questions about competition and potential cost efficiencies. 5. Services are essential for maintaining the readiness and effectiveness of strategic deterrent capabilities. 6. Contractor has a significant role in supporting national defense infrastructure.

Value Assessment

Rating: fair

The contract value of $23.7 million over more than 8 years averages to approximately $2.96 million per year. Benchmarking this against similar engineering services contracts for complex defense systems is challenging due to the specialized nature of ICBM hardness analysis. However, the lack of competition suggests that a thorough price reasonableness review was critical. Without comparative bids, it's difficult to definitively assess value for money, but the long duration and critical nature of the service imply a strategic investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, General Dynamics Mission Systems, Inc., was considered. This approach is typically used when a unique capability or specialized knowledge is required that cannot be met by multiple sources. The lack of a competitive bidding process means that the government did not benefit from the price discovery that typically occurs in a multi-bidder scenario, potentially leading to higher costs than if competition had been pursued.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced opportunity to secure the lowest possible price through competitive bidding. Oversight and robust negotiation are therefore crucial to ensure fair pricing and prevent potential overspending.

Public Impact

The primary beneficiaries are the Department of Defense and the United States' strategic deterrence capabilities. Services delivered include engineering analysis to determine wing and system level hardness status. Projections for hardness degradation are crucial for long-term maintenance and modernization planning. Geographic impact is national, supporting the ICBM weapon system infrastructure. Workforce implications include specialized engineering roles within General Dynamics Mission Systems, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration may not fully account for evolving technological needs without review.
Specialized nature of service makes independent cost verification difficult.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Contractor's established role in defense systems suggests familiarity and expertise.
Services are critical for maintaining national security assets.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's need for specialized technical analysis. The market for ICBM-related engineering services is highly concentrated, with a limited number of contractors possessing the requisite security clearances and technical expertise. Spending in this niche area is driven by national security priorities and the lifecycle management of strategic weapon systems, rather than broad market trends.

Small Business Impact

This contract does not appear to involve small business set-asides, as it was awarded sole-source to a large defense contractor. There is no explicit information regarding subcontracting plans for small businesses. The focus is on specialized engineering expertise, which may limit opportunities for broad small business participation unless specific components or services are outsourced.

Oversight & Accountability

Oversight is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for contract administration. The firm fixed-price nature of the contract provides some level of cost control. Transparency is generally limited for sole-source defense contracts due to national security considerations. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

ICBM Weapon System Sustainment
Strategic Deterrence Programs
Aerospace Engineering Services
Defense Contract Management

Risk Flags

Sole-source award
Long contract duration
Critical defense system support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. IGF::OT::IGF, ENGINEERING SERVICES TO DETERMINE WING AND SYSTEM LEVEL HARDNESS STATUS AND HARDNESS DEGRADATION PROJECTIONS FOR THE ICBM WEAPONS SYSTEM

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2016-07-01. End: 2024-12-31.

What is the specific technical expertise General Dynamics Mission Systems, Inc. possesses that justifies a sole-source award for ICBM hardness analysis?

General Dynamics Mission Systems, Inc. (GDMS) likely possesses unique, specialized knowledge and experience directly related to the Minuteman III (or other ICBM) weapon system's design, components, and operational environment. This includes proprietary data, historical performance records, and established relationships with the government program office. The complexity of assessing 'hardness' (resistance to environmental effects like EMP, radiation, or physical shock) and projecting degradation requires deep institutional knowledge and access to sensitive technical specifications and testing methodologies that are not readily available or replicable by other firms. This specialized capability, often built over decades of supporting the specific weapon system, is the typical justification for sole-source awards in highly technical defense programs.

How does the $23.7 million contract value compare to historical spending on similar ICBM hardness analysis services?

Direct historical spending comparisons for this specific 'hardness analysis' service are difficult to ascertain publicly due to the specialized and often classified nature of ICBM programs. However, the contract's duration (over 8 years) and total value suggest a consistent, long-term requirement for these critical engineering services. Given the sole-source nature, it's crucial to rely on the government's internal cost and technical analyses to ensure the $23.7 million represents fair value. Without competitive bids, external benchmarking is limited, but the sustained funding indicates the perceived importance and ongoing need for GDMS's expertise in maintaining the ICBM weapon system's integrity and operational readiness.

What are the primary risks associated with a sole-source award for critical defense engineering services like ICBM hardness analysis?

The primary risk associated with a sole-source award is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the contractor may have less incentive to offer the lowest possible price. Another risk is complacency; the contractor might become less innovative or responsive over time, knowing they are the sole provider. Furthermore, reliance on a single source can create vulnerabilities if the contractor experiences financial difficulties, operational issues, or if their specialized knowledge becomes outdated without proactive government engagement. Ensuring robust oversight, performance metrics, and negotiation is paramount to mitigate these risks.

What is the expected impact of this contract on the readiness and modernization of the ICBM weapon system?

This contract is expected to have a direct and positive impact on the readiness and modernization of the ICBM weapon system. By providing essential engineering services to determine and project hardness status, it allows the Department of Defense to accurately assess the system's resilience against various threats and environmental factors. This information is critical for maintaining operational effectiveness, planning necessary upgrades or replacements, and ensuring the system's long-term viability as a strategic deterrent. The ongoing analysis helps identify potential vulnerabilities and informs decisions regarding sustainment and future modernization efforts.

Are there any performance metrics or oversight mechanisms in place to ensure General Dynamics Mission Systems, Inc. delivers effective hardness analysis?

While specific performance metrics are not detailed in the provided data, contracts of this nature typically include detailed Statements of Work (SOW) with specific deliverables, milestones, and quality standards. The Defense Contract Management Agency (DCMA) is responsible for contract administration and would oversee performance, ensuring compliance with the SOW. The Firm Fixed Price (FFP) contract type incentivizes the contractor to meet requirements efficiently. However, the effectiveness of the analysis itself relies heavily on the contractor's expertise and the government's ability to validate the results through independent reviews or testing, especially given the sole-source nature.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA820716R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 150 RUSTCRAFT RD, DEDHAM, MA, 02026

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,986,588

Exercised Options: $23,986,588

Current Obligation: $23,737,375

Actual Outlays: $355,250

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline